If you are looking to diversify your investment portfolio, you may be considering investing in a classic car. But is this a worthy investment? The answer really always depends on your investment goals and the funds you have available, yet this is an investment that is worth looking into.
A lot of people invest in classic cars purely because they love them, and this is a hobby they are passionate about. However, classic cars can offer you some serious profit potential as well. But how do you know whether this type of investment is for you or whether it will be more complicated than it’s worth? It’s clear that there are benefits, but the decision on whether to invest will usually be down to your own personal circumstances.
With that being said, continue reading to discover everything you need to know about the benefits of doing so and how you can go about financing a classic car investment.
Benefits of investing in a classic car
There are many benefits associated with classic car investment. To start with, they are typically more valuable as time goes on when compared with other well-known assets, for example, coins and art. Plus, they retain their value well enough to ensure they continually beat the wider stock market when it comes to growth.
You will also find a wide range of different entry points if you want to get started in this area of investment, with classics available in any price bracket to suit your means as an investor. You can start small if you wish, yet you can also find classic cars that are worth millions and millions and pounds.
So, irrespective of whether you are in the market for reliable growth options, such as classic Mercedes, or you are looking for something a lot rarer, you will be able to adapt your investment strategy to suit your interest and your level of risk.
Unlike some other investment assets, there is also the potential to boost the value of your asset if you decide to restore it to its previous glory. This is not something you can do with silverware or stamps.
Of course, if you do decide that you are going to restore your classic vehicle, you need to make sure that you do it properly. If you don’t, you could actually end up considering lowering the cost of your vehicle. You should always use the services of an expert classic car restoration company if you are going to restore your classic vehicle.
How to finance a classic car investment
If you are interested in classic car investments, there are specialist lenders that offer classic car finance specifically. They will provide you with as much as 90 percent of the car’s value, and you can also benefit from interest-only options if you would prefer.
Opting for a specialist lender like this makes a lot of sense because they understand the speed that is needed to capitalise on opportunities that present themselves, and so you can be sure that they will do everything in their power to deliver a fast and flexible lending service.
